Speaking after the company said that it would explore "new fields of operation", chief executive Helge Hansen said that, while print manufacturing would remain core, the company would explore acquisitions in "new business lines with good prospects for growth and earnings".

He identified these sectors as packaging, digital print, water treatment and solar thermal technology.

"We believe that expanding our business scope is a wiser course of action than entering a merger in a shrinking market," he said in an apparent reference to Heidelberg's merger talks with Manroland, which collapsed last month.

The statement came as the company re­­ported solid results for the third quarter of the year, boosted by strong sales in Asia.

Orders for sheetfed presses rose to €149.4m (£134m) for the quarter, up from €145m the previous quarter.

However, the group warned it could identify "no signs of a sustained recovery".

Despite this, the company made a pre-tax profit in the third quarter of  €9.6m, which it described as "a favourable contrast to major competitors".

KBA's results came just three days after rival Heidel­berg announced a pre-tax loss of €74m for the second quarter of its financial year.

The German press giant said the decline in orders had "bottomed out" but warned it would make a loss of €110m-€150m for the year.

Incoming orders for the first six months of the year to 30 September were at €1.1bn, compared with €1.9bn the previous year, although this was positively impacted by a strong showing at Drupa 08.

Meanwhile, Japanese press manufacturer Komori reported a 44% slump in sales for the first six months of the year, compared to the previous year, driven by a 63% drop in sales to the Americas.

Press manufacturers have been severely impacted by the recession and the credit crunch as customers postpone capital investment.